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m Apps staples FedEx l Tracking, Sh ? Iron ?Benefits Online Q MBS Direct Operat D New Tab C Module 3: Assignment management of Firebolt Industries Inc. manufactures gasoline and diesel engines through hwo production departments, Fabrication and Assembly Management needs accurate product cost information in order to guide product strategy Presently, the for allocating factory overhead to the two products. However, management is considering the multiple production department factory overhead rate meth The following factory overhead was budgeted for Firebot company uses a single plantwide factory overhead rate Fabrication Department factory overhead :Assembly Department factory overhead sTotal 455.000.00 286,200.00 Direct labor hours were estimated as follows Fabrication Department 4,550 hours Assembly Department 5,400 Total 0.950 hours ords, as fotows in addbor, the aret iabor hours (an) used to produce a urt of each product neach department-wo diten ned ton, engreen g Fabrication Department 2.9 Assembly Department Check My wark

Solution

Single Plant wide overhead rate per direct labour hour =Total overhead cost / total direct labour hours =$741,200 / 9950 hours =$74.49 per DLH